Why Did Viva Energy Group (ASX:VEA) Report $774.4M 1H26 EBITDA (RC) and a 7.73 cps Interim Dividend?

Sonal Goyal

27 October 2026 08:49 PM AEDT

Why Did Viva Energy Group (ASX:VEA) Report $774.4M 1H26 EBITDA (RC) and a 7.73 cps Interim Dividend?

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Key Highlights

Viva Energy reported 1H26 Group EBITDA (RC) of $774.4 million, compared with $304.9 million in 1H25.
Net debt was approximately $1.7 billion at 30 June 2026, down from $2.1 billion at the end of 2025.
A fully franked interim dividend of 7.73 cents per share was declared, payable on 30 September 2026.

Viva Energy Group Ltd (ASX:VEA) shares closed at $2.91 on 27 October 2026, up 0.69% on the day. The S&P/ASX 200 closed at 8,850.1 (+0.46%) and the energy sector index finished at 11,074.7 (+0.63%). Brent crude slipped 0.60% to US$115.15 as diplomatic efforts around the U.S.-Israeli war with Iran eased concerns about further regional escalation. Viva Energy describes itself as a convenience retailer, commercial services and energy infrastructure business, operating a retail network of over 1,200 stores, supplying fuels to over 1,500 service stations and owning the Geelong Refinery in Victoria.

Latest Development: Half Year Results

On 25 August 2026, Viva Energy announced results for the half year ended 30 June 2026 (1H26). The company reported earnings growth across all business units.

Sales volumes of 8,490 ML, up 1.3%.
EBITDA (RC) of $774.4 million, against $304.9 million in 1H25.
EBIT (RC) of $616.1 million, against $176.0 million.
NPAT (RC) of $371.1 million, against $62.6 million.
Operating cash flow was positive and net debt fell from $2,074.8 million at 31 December 2025 to $1,720.0 million at 30 June 2026.

Latest Development: Business Unit Performance

Convenience & Mobility reported EBITDA (RC) of $138.7 million, up from $74.4 million, with fuel volumes of 2,626 ML, up 2.0%. Convenience sales were $803 million, down 3.8%, with ex-tobacco sales 1.3% higher and tobacco sales down 16.8%. Shop margins were 37.7%. Commercial & Industrial reported EBITDA (RC) of $305.4 million, up 28.4%, with fuel volumes of 5,865 ML. The company said favourable term supply arrangements in place before the Middle East conflict contributed and are expected to moderate in 2H26. Energy & Infrastructure reported EBITDA (RC) of $353.7 million, with a Geelong Refining Margin averaging US$21.1/bbl on crude intake of 19.7 MMbbl. An incident at the refinery on 15 April 2026 reduced margin and intake in 2Q26, and the RCCU and associated units restarted in June. The Federal Government raised the Geelong Refinery Fuel Security Services Payment margin marker cap and collar by 3.6 Australian cents per litre, equivalent to A$5.7/bbl, and no payment was received in 1H26 because the average margin marker exceeded the A$15.9/bbl support threshold. The company noted that Convenience & Mobility results included a full period of the Liberty Convenience acquisition completed on 31 March 2025.

Latest Development: Dividend and Capital Management

The Board determined a fully franked interim dividend of 7.73 cents per share, totalling $126.9 million, representing a 70% payout of C&M and C&I NPAT (RC), the top of the company's 50% to 70% target range. The record date is 7 September 2026 and the payment date is 30 September 2026. The Dividend Reinvestment Plan remains active at a 1.5% discount. Capital expenditure was $123.0 million net of government receipts, and the company reaffirmed FY26 capital expenditure of approximately $350 to $400 million.

Risks and Catalysts on Watch

The release refers to the following outlook items:

The supply chain transformation program is on track for completion at the end of November 2026.
Through the rest of 2026, Viva Energy plans to open approximately 20 to 25 new OTR stores, convert 10 to 15 Reddy Express stores and convert 25 to 30 sites to an unattended self-service format.
C&I earnings in 2H26 are expected to moderate as some favourable term supply arrangements ease, though the company expects them to be higher than in 2H25.
Geelong Refinery margins were expected to stay supportive through the rest of FY2026, with a July GRM of US$20.7/bbl.
The company continues to engage with the Federal Government on Australian Fuel Reserves, higher Minimum Stockholding Obligations and a Refinery Retention program.

In Summary

The 25 August 2026 release covered half-year earnings across the three business units, lower net debt, an interim dividend and the company's second-half plans. It also noted the impact of the April refinery incident and the ongoing discussions with government on fuel security.

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